US VISA and Tax

pjbltd

Hi forum,

I have been offered a job opportunity in New York, USA. I currently work in London.

I was hoping someone could help me understand the tax implications of moving from the UK to US. I would be on a local contract and my employer would get me a VISA. I have an Irish (EU) passport.

I would plan to return to the UK in 2 years, so this is more a sabatical.
I have heard horror stories of the US Tax Man wanting to tax you the rest of your life even when you move away. Is this true?

All help and advice is much appreciated!

Many thanks,
pjbltd

[Deleted User]

Only if you become a citizen which won't happen in 2 years. They tax non resident citizens wherever they live.

pjbltd

Thanks How long can you hold off becoming a citizen?

pjbltd

Also for Tax purposes would I be domiciled in UK or US? I have a flat I want to rent out here in UK, would I pay tax on the rent to HMRC or US tax man? Thank you!

agrinnall

pjbltd wrote: »

Thanks How long can you hold off becoming a citizen?

I would be surprised if you are ever required to become a citizen, people live in the US for many years without doing so. Mind you, if The Donald gets in he'll probably kick out everyone who isn't a citizen...

Wayne_O_Mac

pjbltd wrote: »

Also for Tax purposes would I be domiciled in UK or US?

For a 2 year assignment it definitely wouldn't be the US

pjbltd wrote: »

I have a flat I want to rent out here in UK, would I pay tax on the rent to HMRC or US tax man?

You'd definitely pay it to HMRC. The US may tax it also, but you'll probably get credit in one country for the tax paid in the other.

JSMill

pjbltd wrote: »

Hi forum,

I have been offered a job opportunity in New York, USA. I currently work in London.

I was hoping someone could help me understand the tax implications of moving from the UK to US. I would be on a local contract and my employer would get me a VISA. I have an Irish (EU) passport.

I would plan to return to the UK in 2 years, so this is more a sabatical.
I have heard horror stories of the US Tax Man wanting to tax you the rest of your life even when you move away. Is this true?

All help and advice is much appreciated!

Many thanks,
pjbltd

My understanding of this is the there is likely to be a double taxation agreement between the USA and Eire. Under this, you will be taxed on your worldwide income based on where you are physically residing. While you are based in the USA you will have to pay US tax, though you can get a credit for any withholding tax you have suffered in Eire. I know about this because I lived for about 8 years in the USA/Puerto Rico, then came back to UK. I used to worry about the business of being liable for my worldwide income in the US after I left there, but that is not really an issue. If you intend to hold onto green card then things may be more complicated than that, but I eventually gave up on that. Am happy to let you know more privately if you wish.